AI Inventory Optimization Drives £297,000 Daily Revenue Boost

A construction materials supplier faced unpredictable inventory challenges due to COVID-19. They implemented an AI solution that analyzes data and automates decisions, leading to 4,000 daily AI-driven inventory actions and £297,000 in daily prioritized orders. Consequently, there was a notable improvement in efficiency, and the potential for revenue generation was maximized.

Client:

Marshalls is the acknowledged front-runner in providing commercial paving supplies for the United Kingdom. The company offers a variety of products and innovative solutions that address the targeted needs of the nation’s most challenging construction and development projects.

Problem Statement:

● Inventory Volatility: The COVID-19 pandemic profoundly altered Marshalls’ inventory management, leading them from an overstocked condition to a significantly reduced situation. This created an unpredictable and challenging environment.
● Manual Processes: Reliance on manual processes for inventory forecasting and order fulfillment proved inadequate to handle the volatility and demand fluctuations, resulting in inefficiencies and delays.
● Jeopardized Profitability: The inability to effectively manage inventory threatened Marshalls’ strategic goal—growth and a superior customer experience.

Results:

☑️ Data-Driven Decisions: Peak’s AI platform analyzes various data points to make 4,000 daily decisions about inventory levels, stock allocation, and order prioritization.
☑️ Increased Efficiency: AI-powered prioritization enables Marshalls to allocate 600 orders to trucks daily, streamlining their logistics operations.
☑️ Daily Order Prioritization: Marshalls leverages AI to prioritize orders with a total daily value of £297,000. This ensures that their most valuable orders are fulfilled first, maximizing revenue potential.

AI Solution:

Faced with fluctuating inventory levels and the limitations of manual processes, Marshalls implemented Peak, an AI-powered inventory management solution. Peak AI empowers Marshalls with intelligent inventory management by:

Forecasting demand: The AI platform utilizes advanced algorithms to predict the demand for each product at every Marshalls distribution center.

Recommending optimal stock levels: Based on these forecasts, Peak recommends the minimum amount of stock needed across the network, ensuring efficient resource allocation.

Automating key decisions: Seamlessly integrating with Marshalls’ existing system, the AI automates critical inventory decisions overnight, freeing up valuable human resources.
Peak AI’s capabilities enable Marshalls to:

● Optimize production: Produce only the needed stock, minimizing waste and associated storage costs.

● Prioritize high-value orders:Ensure the right stock is readily available at the right location to fulfill customer orders efficiently.

● Improve allocation: Employing AI-powered order prioritization to maximize revenue and customer satisfaction.

Peak AI empowers Marshalls to achieve smarter inventory management, optimizing production, allocation, and order fulfillment.

References:

1. Minimized costs, maximized service / Marshalls’ Case Study

2. The Peak AI Platform Lets Businesses Tap Into The Power Of Artificial Intelligence

Industry: Construction Materials
Vendor: Peak AI
Client: Marshalls